In this episode of Debt Matters, we look at a major UK energy debt story after Ofgem’s interim chief executive Tim Jarvis warned that fewer households may need to be exempt from paying energy bills as unpaid balances push costs higher for everyone else.

UK household energy debt has reportedly reached around £5.5 billion, and Ofgem has warned it could rise above £7 billion by the end of 2026 if the problem is not brought under control. The issue is not only that customers are struggling. Unpaid bills are becoming a wider market cost, with suppliers passing parts of that debt back into prices for other households.

That raises a difficult question: how do you protect vulnerable people while also making sure the system does not encourage non-payment?

Why unpaid energy bills matter

Energy arrears are differ ...